At first I was considering to open an account with them, but then read some bad reviews. Most of the complaints are about their customer service. Also about them opening account in one currency and then charging every time they convert currencies - some extra charges. Also about not precise data - apparently they donít have tick data. I have also had a look at their platform and charts - the platform looks complicated and charts are not very good (the charting package provided by my SB company looks superior compared to it). I even read one complaint about a long delay in withdrawing funds (I consider anything longer than 3 working days as slow)
Maybe Iím expecting too much, but thatís how most of the SB companies in UK operate (very good customer service, platforms and charts free of charge, no data feed charges, access to all sort of different markets, all the profits in pounds, free money withdrawals taking 3 days or less etc.) At the moment Iíve been using SB account and they provide everything for free apart from spread that is only 1 point for DAX - much better value than any overseas broker.
Itís only that Iíve heard from others that it is a good idea to open an account with a futures broker - after doing some research I canít see why should anybody from UK open them? Maybe I havenít found a good one as yet?
I hope you were consistent positive trading on your spread betting account.
If you are looking to step over to trade the real Dax future I want to point out that
you first need to check the tax situation for you in UK. Spread Betting is so popular there
because no tax is due on the wins.
Second be aware of the very different situation to trade a Dax future. Today's initial
margin on ONE Dax future with Interactive Brokers is €11'106. Every point made
is €25. On the other hand the spreads are normally 0,5p and thus smaller than
on spread betting accounts.
Start well funded into this adventure!
I forgot to mention that as well - with most of SB companies you can trade equivalent of one FDAX contract (around 21 pounds per point) with around 500 pounds on your account. With IB you need more than 11000 euros margin - a massive difference.
Also important - not paying any tax on profits when using SB
Can't really see what's the point in using non UK futures brokers, but again I have no experience in using one
BTW That's my impression atm - I'm still open to suggestions and trying to research some more.
Last edited by DAX trader; January 13th, 2014 at 12:56 PM.
There is "leverage" of a certain derivative and there is "security" where you put your initial funds.
As there are SB companies that are doing well - there are as well a lot of grey opponents (and yes - YOUR
opponents as well) and then there are a lot of bucket shops... never putting your money into the markets.
Please read threads about bucket shops and threads about leverage here on futures.io (formerly BMT).
Trading well over time with some gains you got with own efforts and getting them back to your benefit is the
most important for putting in time, nerves and of course money.
Tax is the last important thing that counts - when you know you have some veritable gains and a serious
broker sending your funds plus gains back...
PS: I know about what I am speaking - I do have a SB account with one of the bigger UK companies - just to know
about the system. In my opinion they worked well and I could fund an account and withdraw as well.